Designing cloud-based knowledge management systems to improve organizational innovation

Organizations in transitional economies face significant challenges in implementing effective knowledge management systems owing to infrastructure limitations, post-conflict instability, and cultural barriers that prioritize tacit knowledge over formal documentation. This study addresses this critical gap by developing and evaluating a context-sensitive Cloud-based Knowledge Management System (CKMS) specifically designed for Iraqi firms operating in resource-constrained conditions. Employing a Design Science Research (DSR) methodology integrated with an explanatory sequential mixed-methods approach, we collected data from 350 knowledge workers across ten organizations and conducted structural equation modeling to examine the relationships between CKMS implementation, knowledge management capabilities, and organizational innovation outcomes. The findings demonstrate that CKMS significantly enhances all four knowledge management capabilities—acquisition, storage, sharing, and application—with particularly strong effects on knowledge storage (β = 0.72, p < 0.001) and knowledge application (β = 0.70, p < 0.001). These enhanced capabilities subsequently drive substantial improvements in organizational innovation, with process innovation showing the strongest impact (β = 0.56, p < 0.001), followed by product innovation (β = 0.42, p < 0.001) and business model innovation (β = 0.38, p < 0.001). Leadership support and organizational culture emerge as critical moderating factors that amplify the effectiveness of CKMS. This study extends Dynamic Capabilities and Resource-Based View theories by demonstrating how context-adapted technological solutions can function as strategic resources in transitional economies, providing a validated framework for digital transformation that prioritizes accessibility and cultural fit over technological sophistication, thereby offering actionable insights for organizations and policymakers operating in similar post-conflict settings.